Fed’s Decision

After the August 7th meeting, Economist weigh on the decision made by the FED and the conclusions drawn have been analysed by many authors in the ‘Wall street Journal’ blog. Of the various analysis, it has been felt that the increased inflation would outweigh other monetary policies. The falling value of dollar has also been seen to increase the risk of inflation along with lower productivity and higher labour cost. Many people regard Ben as an academician and not as an one experienced in real market conditions, this might prove to be the reason that Fed still feel the earlier conditions can be revived. Though a week of financial mayhemmight have taught the Fed. that some sort of policy intervention should be there to calm the market.